Telkom Sa Soc Ltd. · JSE:TKG

Telkom Sa Soc — Investor Day (2014)

82 slides from Telkom Sa Soc's investor day presentation, 2014

  1. Slide 1: Retail Strategy and Execution

    2014 Retail Strategy and Execution Brian Armstrong

  2. Slide 2: Outline

    Outline 01 1. Our View of the Market, & Convergence from a Telkom perspective 2. Our Strategy Execution Framework 3. Customer experience 4. Enterprise: Beyond Connectivity – Verticalisation & Solutions 5. Portfolio Evolution 6. Our ICT Strategy 7. Fixed Voice 8. .. 9. Winning the digital home - our

  3. Slide 3: The Market

    The Market and our perspective on convergence 01

  4. Slide 4: Overview of the South African TMT Market

    Overview of the South African TMT Market CAGR 9.1% 9.2% 6.1% “MEDIA” 0.8% R 71Bn* 7.4% 6.8% CAGR 21.9% 5.8% 5.0% 8.1% 8.5% “IT” 10.6% R 120 Bn* 7.0% CAGR 5.6% 0.6% 5.2% “MOBILE” 15.7% R 154 Bn* -1.1% 6.1% CAGR 15.9% 8.2% “FIXED” R 48 Bn* -2.5% 4.2% CAGR * 2019 4 © Telkom 2014

  5. Slide 5: Market Overview 2014, Total SA Market

    Market Overview 2014, Total SA Market Fixed Mobile Note: Each square IT & NW Mobile represents ±R100m of Cons & SI SW HW Devices Market Value Op Svcs DC, Cloud & Outsourcing Mobile Fixed Data Data Alt. Voice Fixed Mobile Voice Voice Technology Internet Adv. Media TV Adv. Pay TV Gaming Music Movies P

  6. Slide 6: The world is changing…

    The world is changing… 6 © Telkom 2014

  7. Slide 7: Technology trends and convergence

    7 Tablets Smartphones Virtual Desktop Seamless Fixed-Mobile connectivity Convergence PaaS VoIP, IPT Cloud: IaaS, Cloud: SaaS Multimedia Web 2.0 Conferencing © Telkom 2014 IPTV Streaming, Social Media

  8. Slide 8: Digital Home & Lifestyle, Digital Business

    01 Digital Home & Lifestyle Digital Business 8 © Telkom 2014

  9. Slide 9: Strategy and our execution framework

    Strategy and our execution framework 02

  10. Slide 10: Telkom's Overall Strategy

    Telkom’s Overall Strategy 2 PURPOSE Our vision is Seamlessly connecting South Africans to a tied to a better life national vision ….as the leading provider of converged ICT solutions Optimising shareholder value OUTCOME …. leading to Stabilise revenue to return to growth. sustainability… Grow EBITDA

  11. Slide 11: Telkom's Retail Strategy: Leader in enterprise, business and government

    Telkom’s Retail Strategy 2 KEY ACTIONS Leader in 1.Develop a vertical go-to-market- and solutions capability for large, enterprise, corporate and Government business 2.Grow into adjacent IT markets through organic growth, partnerships and business and acquisitions. 3.Improve our offer to SMEs with l

  12. Slide 12: Telkom's Retail Strategy: Centre of the digital home & lifestyle

    Telkom’s Retail Strategy 2 Centre of the KEY ACTIONS 1. Customer First! We will improve customer experience, with a digital home & dedicated office focusing on process improvements. 2. Deliver a sustainable, winning mobile proposition lifestyle 3. Develop and deliver an Integrated Broadband Plan to

  13. Slide 13: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 2 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  14. Slide 14: Customer First

    CUSTOMER FIRST Becoming a Customer Experience Leader in South Africa 03

  15. Slide 15: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 3 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  16. Slide 16: Customer First programme overview

    OVERVIEW Customer First programme is putting the Customer First, by… 3 • 1 Building a dedicated CEX team to act as CEX nerve centre & watch dog • 2 Fixing what is broken • 3 Bringing the customer’s voice into Telkom – what makes our customers feel good or bad • 4 Create an army of promoters - employ

  17. Slide 17: Focused Scope to Deliver Results

    Focused Scope to Deliver Results 3 Customer First ambition: We want to become the undisputed customer advocacy leader across target customer segments through a relentless focus on making Telkom products and services relevant, easy to buy, satisfying to use and easy to manage Initial programme scope:

  18. Slide 18: We measure CEX using the Net Promoter Score

    We measure CEX using the Net Promoter Score (NPS) 3 "On a scale 0-10, how likely is it that you would Extremely recommend our company to a friend or colleague?" Extremely likely unlikely 9 - 10 7-8 0-6 PROMOTERS PASSIVES DETRACTORS • Loyal customers • Got what they asked for but • Dissatisfied by th

  19. Slide 19: Customer loyalty leaders grow faster and have lower costs

    Customer loyalty leaders grow faster and have lower costs than the average 3 15% Lower >2x CAGR Source: Bain & Company, Inc. 19 © Telkom 2014

  20. Slide 20: Key advocacy drivers grouped in categories

    Key advocacy drivers can be grouped in 5 categories with varying degree of importance to customers 3 Very high Decreasing order Medium of importance Connection Reporting and Customer Price Product offering functionality fixing faults service • Experienced speed • Cheap versus • Responsiveness • Resp

  21. Slide 21: What do our Customers say is Important?

    What do our Customers say is Important? 3 Connection functionality, service responsiveness and timely resolution of issues are the key drivers of customer advocacy High Legend CONSUMER FIXED Price Connection Faults and service Product offering Upgrade/change product Billing Installation Explore Sour

  22. Slide 22: Customer Promoter Plan overview

    Customer Promoter Plan overview 3 Explore & buy: Easy to Get started: Fix fault: Usage experience: find, choose and buy Conveniently connected One contact, one day Always as needed 1 3 6 8 Enable effective customer Manage physical network Deliver simple and efficient Ensure ease of reporting faults

  23. Slide 23: Customer First: Changing Perceptions of Telkom

    Customer First: Changing Perceptions of Telkom 3 Eg. Cybernest, Enterprise Markets: Reasons for Rating of Telkom Data Centre Hosting Services and/or Cloud Computing Services The size of the text is proportionate to the number of mentions. NO FEEDBACK “We are never offline and also when I log a BAD E

  24. Slide 24: Improving Perceptions of Overall Quality of Service

    Improving Perceptions of Overall Quality of Service 3 Telkom Overall Quality of Service top 2 Box Score Oct. 2008 to Oct 2013 • Significant Customer Satisfaction Improvement across ALL segments • Enterprise, Government & Mobile Customer Satisfaction now at Global Benchmark levels Source: Telkom annu

  25. Slide 25: Growing Beyond Connectivity in Enterprise

    GROWING BEYOND CONNECTIVITY IN ENTERPRISE Vertical Solutions Growing into ICT Mobile 4

  26. Slide 26: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 4 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  27. Slide 27: Beyond Connectivity

    Beyond Connectivity 4 Customer Connectivity Off-Premise / Premise Cloud • Managed VPN • WAN Optimization • Threat Management Product Sales ICT Hardware: End User Hardware • Router, • (Laptops, • Switches • PC, Hosting • LAN • Printers • etc.) • Monitors) SaaS • Hosted Exchange • Hosted Pastel My Bus

  28. Slide 28: Market Sizing: Verticals and company size

    Market Sizing: Verticals and company size 4 Financial Services, Retail and Government represent more than 65% of the total South African IT spend in 2012 Total South African IT market spend by vertical - 2012 market (R Billions) size 36.1 30.6 30.3 21.0 12.5 4.6 4.8 140.4 1.2 0.6 Top 350 12.5 7.1 3.

  29. Slide 29: Approach to Solutions

    Approach to Solutions 4 Customer Centric Approach Solution Telkom Solution(s) Modules Product Houses Solution 1 Product House A Customer Input Innovation Solution 2 ICT Trends Product House B Solution Solution 33 Partner(s) Product Centric; Engineering Approach 29 © Telkom 2014

  30. Slide 30: Solution-Centric Operating Model

    Solution-Centric Operating Model 4 New operating model and structure: Solutions Business plays a pivotal role, supporting the account manager, solutions architect and service management team, and draw input and expertise from the product houses where required Finance Retail Government Healthcare Edu

  31. Slide 31: Portfolio Evolution

    PORTFOLIO EVOLUTION: Consolidating product suite and focus on fibre and high bandwidth products 5

  32. Slide 32: Portfolio Approach

    Portfolio Approach 5 What/Who does “it” Underlying Individual, Corporate, Systems, “Machine Needs “Person to Person” to Machine” Commu- nication What “it” does / is Computing & Applications Product Sets which Deliver the Needs Content In our view the underlying needs are enduring, but the product se

  33. Slide 33: Telkom Business – Four Product Journeys

    Telkom Business – Four Product Journeys 5 • Managed Unified Communications (UC) Fixed Line Converged • Fixed Mobile Convergence (FMC) Personal • SIP Trunking Telephony Communication • Hosted Communication Services • FMC • Comprehensive equipment and services bundles Broadband + Digital Home & • Virt

  34. Slide 34: ICT Strategy

    ICT STRATEGY ICT Growth Strategy BCX Update 6

  35. Slide 35: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 6 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  36. Slide 36: Strategic Rationale and Plans for BCX in Telkom

    Strategic Rational And Plans for BCX in Telkom 6 Strategic Rationale Plans for BCX in Telkom • IT-IP convergence is real. Network • Don’t want to destroy the value we acquire: and IT infrastructure coming intend to retain BCX as a separate together. Individually we are operating entity in Telkom Gro

  37. Slide 37: Together BCX + Telkom can build distinct market differentiation

    Together BCX + Telkom can build distinct market differentiation 6 Competitive Full suite ICT One-stop-shop Best-in-class data connectivity + offering via E-Gov’t SME ICT value center offering infrastructures partnership with ICT platform proposition offering Global ICT player •Successful integration

  38. Slide 38: BCX Transaction – Current Status

    BCX Transaction – Current Status 6  TKG Board approved the offer on 16 May  BCX Board approved offer on 21 May  Transaction announced 22 May  All Conditions Precedent to offer met 8 July  Offer Circular to be posted 11 July  Competition Commission filing 31 July  Scheme meeting (BCX sharehold

  39. Slide 39: Integration Planning

    Integration Planning 6 We will manage BCX/DCO integration around 5 imperative areas with 16 initiatives to capture deal value and mitigate risks Process 1 2 3 4 5 Focus on the Grow the revenue Optimise the Mitigate dis- Enable the core base cost-base synergies organisation 1-1 Focus BCX on core - 2-

  40. Slide 40: Fixed Voice

    FIXED VOICE Our challenge to defend and migrate our historical core business 7

  41. Slide 41: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 7 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  42. Slide 42: Fixed voice market is being disrupted by three developments

    Fixed voice market is being disrupted through three major developments 7 Demand for richer Decline in fixed voice spend Migration to voice over IP communication solutions IP Legacy (TDM) Trends • Global revenue is expected • IP voice enables savings & • Rising adoption of ‘unified to drop 7.5% annua

  43. Slide 43: Fixed Voice Revenue Evolution

    FIXED VOICE REVENUE EVOLUTION 7 Telkom has witnessed the least decline in fixed voice compared to other fixed incumbents… Fixed voice revenue evolution1,2 EPPM (Baseline year revenue = (ZAR/min) 100) 100 Note: 1arc elasticity of total outgoing minutes relative to EPPM from 2009 to 2012; Source: Wire

  44. Slide 44: Winning in the Digital Home

    WINNING IN THE DIGITAL HOME Our strategy in the Consumer market 9

  45. Slide 45: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 9 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  46. Slide 46: Telkom intends to be the broadband leader in South Africa

    Telkom intends to be the broadband leader in South Africa, whether at home or work 9 “At home” “On the go” “At work” Location Driving Walking Shopping Device Tablet Laptop PC TV Tablet Tablet Laptop PC TV • Video calls, Entertainment, • Emails, Music streaming, SMS • Emails, Large data transmission

  47. Slide 47: Integrated broadband plan: three key aspects

    To successfully achieve leadership in broadband, Telkom have developed an integrated broadband plan considering three key aspects 9 USAGE BEHAVIOUR VALUE PROPOSITION TECHNOLOGY TO SERVE Location Speed and data capacity Broadband technology choices “Home” “On the go” “At work” FTTH Wired 10 Mbps – 10

  48. Slide 48: Overview of Integrated Broadband Plan

    Overview of Integrated Broadband Plan 9 • Detailed geographic view of broadband demand based on demographics of 22,000 Sub Places in South Africa IBP Demand • Telkom performance assessment at Sub Place level and identification of immediate opportunities areas Assessment • In-depth customer survey to

  49. Slide 49: Fact-based approach to Telkom's Integrated Broadband Plan

    Unique & fact-based approach used, leveraging census and Telkom data to develop Telkom’s Integrated Broadband Plan 9 2013 KEY FACT BASE 22K SUB PLACES VIEW SA BB REVENUE MAP TELKOM PRESENCE Census data of 2013 Demand Assessment Sub Place Prioritization 14.9M HH in SA Performance Analysis Telkom mark

  50. Slide 50: 2013 broadband market size at Sub Place level

    2013 number of consumer BB subscribers with >R12.8K monthly income 9 2013 broadband market size at Sub Place level – HH >R12.8K income view NUMBER OF BROADBAND INTEREST IN ADDRESSABLE LARGE SCREEN LARGE SCREEN SA HH AFFORDING INTERNET HH AT HOME ENABLED HH • Total # of SA • 1.4%* of HH • HH currentl

  51. Slide 51: Consumer broadband market expected to grow to 2.9M households by FY2020

    The consumer broadband market is expected to grow by ~13% to reach 2.9M broadband households by FY2020 9 Addressable Broadband Households (R13k/m household income threshold) Actual Forecast Note: FY14 subscribers based on high level demand analysis at the Subplace level; FY15-20 subscribers based on

  52. Slide 52: Telkom Broadband Coverage Plan FY 2020

    Telkom Broadband Coverage Plan FY 2020 9 TELKOM PLANNED FY 2020 BROADBAND COVERAGE BY TECHNOLOGY 52 © Telkom 2014

  53. Slide 53: Winning in Mobile

    WINNING IN MOBILE Overall Plan Status MTN transaction Projections 10

  54. Slide 54: Winning in Mobile

    Winning in Mobile 10 Execution MTN Combine Differentiate Excellence Transaction Consumer & with LTE Mobile Transform “Deliver the Network Operational Numbers” Economics Efficiency Data Leadership

  55. Slide 55: Operational Excellence

    Operational Excellence 10 Current Status Looking Forwards • Improved Mobile EBITDA loss by 20% to R1.3Bn • Shift from Voice to Data • Reduced Mobile Capex by 12% to R1.37 Bn • Growth of LTE • Subscriber base grew 18%; • Spectrum remains constrained • Dramatic improvements in Mobile Customer • Conver

  56. Slide 56: The Mobile Market is Transforming

    The Mobile Market is Transforming 10 3 Retail R122 Billion 4 1 Key Messages Revenue Growth Rates: 5yr CAGR 1. Mobile remains a critical and attractively growing sector of the SA telecoms market Period Total Voice Data 2. Pressure on voice and growth of data will change the ‘09/14 2.3% 2.3% 23% marke

  57. Slide 57: Mobile price elasticities show different consumption behaviours

    Mobile price elasticities shows different consumption behaviours 10 Historical voice shows a linear relationships Historical data shows strong non-linear relationship between price reductions and usage increases between price reductions and usage increases Source: Africa Analysis workings using indu

  58. Slide 58: De-risking our mobile business

    De-risking our mobile business 10 The Proposed Transaction Rationale • MTN will take over financial and operational • Industry is facing unprecedented shift from voice to responsibility for the roll-out and operation of data Telkom’s RAN. • SA operators need to expand capacity and footprint • Recipr

  59. Slide 59: Transforming our Go-to-Market

    TRANSFORMING OUR GO-TO- MARKET Project overview Towards more integrated consumer Propositions Evolving the Channel 11

  60. Slide 60: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 11 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  61. Slide 61: Go-to-Market project overview

    Segmentation Go-To-Market Project overview Value Proposition 11 Channel We are revamping our GTM in terms of Segmentation, Value Proposition and Channels Matrix … 3 7 Channel optimization & ownership Segmentation Value Proposition models 1 2 High-level Integrated value 3 segments and proposition des

  62. Slide 62: High-level deliverables for the Go-to-Market project

    High-level deliverables for the Go-to-Market project 11 Value Channel optimisation & GTM Segmentation Proposition ownership models Operationalisation • Agreed principles for • 1 and 3 year value • Integrated channel strategy for • Mobilise for proposition developing a proposition for key Telkom volu

  63. Slide 63: Product strategy drivers

    Segmentation Product strategy: Product decisions based on set of key strategic drivers Value Proposition Channel 11 1• Design products to capture greater share of wallet of total telco spend 2• Simplify product proposition 3• Drive ‘premium’ positioning of high speed broadband through product range

  64. Slide 64: Telstra example

    Segmentation Telstra example Value Proposition Channel 11 4 SIMPLE HOME VOICE & BROADBAND BUNDLES CLEAR, SIMPLE PROPOSITION Internet: All capped, range from 5 to 500GB broadband Home voice: Range from no free to unlimited (including mobile) Additional: Unlimited calls to a limited number of mobile n

  65. Slide 65: Virgin Media example

    Segmentation Virgin Media example Value Proposition Channel 11 • TV - Base product - 60+ to 260+ channels £2000 to £10445 • Internet (GBP)1 - 50Mbps to 152Mbps (fair usage policy uncapped) • Fixed Voice - Unlimited Weekend Calls to landlines and on-net numbers - WiFi calling with Smartapp Customisab

  66. Slide 66: How the role of channel will change in the next 1-3 years

    Segmentation How the role of channel will change in the next 1-3 years Value Proposition Channel 11 Stores • Predominantly mobile sales – also play a role in fixed ‘exploration’ • Reduced service (over time) fulfilled via self-service terminals Call centre • Focus on fixed / bundle sales (inbound &

  67. Slide 67: Contact Centre Transformation

    CONTACT CENTRE TRANSFORMATION Principles and vision, main messages Short term interventions End state design 12

  68. Slide 68: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 12 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  69. Slide 69: Contact Centre End state – Principles and vision, main messages

    Contact Centre End state – Principles and vision, main messages 12 • The ‘End State’ for the Call Centre environment is driven by a) Customer Experience orientation, b) cost efficiency, and c) flexibility to adapt to future changes in the environment • Three main blocks characterize the End State: 

  70. Slide 70: Initiatives in Contact Centres address three main issues

    Initiatives in Contact Centres seek to address the main three issues identified: first call resolution, difficulty of access and long calls 12 Focus Area No Initiative Name Status What has happened Streamline Call Centre 4.1 organization  Review Call Centres’ organizational model to reduce ineffici

  71. Slide 71: Transformation To End State

    Transformation To End State 12 Business Process Improvements executed by the customer experience office for transformation AS IS Transformation Phase End State Fixed Line • Complex Call Centre • Business Process organization consists of Improvements 17 centres across 15+ • Simplify managerial locati

  72. Slide 72: Content & VAS

    CONTENT & VAS Overview Content as driver for High Speed Broadband South African Market Options Our Approach 13

  73. Slide 73: Telkom's Retail Strategy Execution Framework

    Telkom’s Retail Strategy Execution Framework 13 Consumer Centred Business Centred 1. Find a sustainable and winning position in 9. Build a significant Business Mobile presence Mobile (“Green” plus others) 2. Become a Customer Experience Leader 10. Expand into Adjacent ICT segments (“Customer First”)

  74. Slide 74: Owning the digital home requires a holistic approach

    Owning the digital home requires a holistic approach - covering content, connectivity and VAS 13 Owning the digital home… TV/Computer Tablet/Mobile Home… …and anywhere else … requires securing key services Security and Digital content Connectivity E-learning automation • Live HD TV channels • High-s

  75. Slide 75: Our Taxonomy of Content and VAS

    Our Taxonomy of Content and VAS 13 IPTV Video-calling Video & VoD Social Entertainment Own Video Streaming Non-Linear Games Linear Music Streaming Smart Home Interactive Services Utilities and “House” Management SVOD & TVOD Home security OTT Integration (e.g. Netflix, Apple TV) Convenience Auto & re

  76. Slide 76: TV is the main driver of demand for high-speed broadband

    Context: Need for 3P/4P TV is the main driver towards the demand for high-speed broadband 13 Products and services bandwidth requirements Smart home examples (Mbps) 100 When could an FTTC connection (max 40Mbps) be insufficient? FTTH 1 VDSL 3DTV 30 Mbps HDTV 10 Mbps Video security 10 Mbps TOTAL 50 M

  77. Slide 77: High Competition: operators bundling IPTV and VAS

    As a result, many operators have adopted bundling IPTV and other VAS services to drive demand 13 Price range1 (USD) BB speed range3 (Mbps) IPTV Channels4 FMC VAS 5 20 18 53 • e-learning, VoD, 48  90 e-security First mover wins 1 4 50 100 66 129 • VOD, OTT, music, 23  33 e-security 20 20 1K • VoD (

  78. Slide 78: 3P/4P allowed operators to reduce churn and increase ARPU

    3P/4P have allowed operators to reduce churn and increase ARPU 13 Monthly churn by offer - UK Churn MEO - Portugal (Q3 2012 annualised) (Indexed) -44% -53% -26% Monthly churn by offer - Belgium NPV MEO customer - Portugal (Q3 2012 annualised) (Indexed) +95% -10% -50% Source: Operators' website; Delt

  79. Slide 79: Operators are integrating vertically

    To extract maximum value, operators are now integrating vertically, either organically or through acquisitions 13 Players Description of deal Rationale • After acquiring a controlling stake (51%) • Increase control of content to enrich existing in 2009, Comcast is completing the offer (accelerate av

  80. Slide 80: Recent announcements show how rapidly content industry is moving

    Recent announcements reflect how rapidly the content industry is moving 13 Players Date Description of deal Rationale 01/04/2014 • BT announces the launch of all of their sport • Reduce dependency on the YouView channels on Chromecast (Google’s digital media television platform currently used xxx pl

  81. Slide 81: TV/Video content is 64% of South African content market

    TV/Video content represents 64% of the content market in South Africa and is amongst the fastest growing 13 South African Digital Services & Content – 2013[e] xx% 2008-2013 CAGR% (ZAR billions, % of total market) +25% +11% +5% +9% +14% +8% TV advertising -3% 1.6 12 (3%) Consumer (25%) 1.8 magazines

  82. Slide 82: Potential options for content, not mutually exclusive

    There are 4 potential options although not mutually exclusive (i.e. could be successive incremental ‘layers’) 13 Risk 1 Connectivity 2 Mediation 3 Aggregation 4 Content ownership • Infrastructure only play • Unlock further value for • Create IPTV platform • Acquire own content • Create a high-speed

Telkom SA SOC — Investor Day (2014) on 6ix